Question

Stockholders' equity is an important heading in a corporate Balance Sheet. Let's begin the discussion of stockholders' equity by asking: How is the stockholders' equity section of a corporate Balance Sheet different from that in a single-owner business?

Answer 1

Answer. In liabilities side of Balance sheet, we show equity capital/ stockholder equity heading in every type of format of business. In single owner business, we show owner’s capital contribution of their name and past earning in this heading. But in a company’s stockholders’ equity heading, we shows authorized, issued, and outstanding common stock, preferred stock, treasury stock, retained earnings, accumulated and other comprehensive income, excess paid in capital of common and preferred stock than par value etc. in this heading.